>MONTHLY TECHNICAL PERSPECTIVE JULY 2009 (EMKAY)

Nifty
Last month Nifty opened on a positive note and continued its upside journey and on 12th June it tested our short term target of 4649 and further made a high of 4693. But on higher levels selling pressure was witnessed and Nifty fell sharply and on 17th June it broke the support of 4365 and further continued its downside journey and made a low of 4143. Thereafter Nifty took support and recovered some of its losses and finally closed at 4291 with a loss of -3.53% on m-o-m basis. On the daily chart Nifty had formed Lower Top and Lower Bottom, thus the short term trend is still looking weak and we maintain our downside target of 4092. However in the long term Nifty has strong resistance at 4693 levels.

Sensex
Last month Sensex opened on a positive note and continued its upside journey and on 12th June it tested our short term target of 15579 and further made a high of 15600. But on higher levels selling pressure was witnessed and Sensex fell sharply and on 17th June it broke the support of 14526 and further continued its downside journey and made a low of 14016. Thereafter Sensex took support and recovered some of its losses and finally closed at 14493 with a marginal loss of -0.90 % on m-o-m basis. On the daily chart Sensex had formed Lower Top and Lower Bottom, thus the short term trend is still looking weak and we maintain our downside target of 13518. However in the long term Sensex has strong resistance at 15600 levels.

Bank Nifty
Continuing its northbound journey the Bank Nifty opened on a positive note and was trading in the range of 7559 to 6909. On 29th June Bank Nifty broke the recent high of 7567 and made a new high of 7626. Thereafter it shed some of it gainsand finally this index closed at 7338 with a loss of -1.05% on m-o-m basis. As this index is continuously making higher tops and higher bottom, thus it is still looking strong and in the immediate term if this index starts trading above 7626 levels then it can test 7924 which is 61.80% retracement level of the recent fall from 10774 to 4133. However in the short-term 6813 will play as a strong support.

To see full report: TECHNICAL PERSPECTIVE